CTS 2024: What do we know about possible approval of its withdrawal by Congress? | Answers

With 21 votes in favor and only one date on the horizon, the Economic, Banking, Financial and Financial Intelligence Authority approved by a majority. Compensation for length of service (CTS) When will this important matter be discussed before the Plenary Session? In the following note we will tell you what you need to know.

On which date can withdrawal of CTS 2024 be discussed?

The Commission on Economics, Banking, Finance and Financial Intelligence, with 21 votes in favor and 1 against, approved the proposal to empower workers to freely remove 100% of their service time compensation (CTS) by a majority vote.

Based on this decision, Congressman Ilich López (Popular Action) emphasized the need for financial education in schools so that citizens can properly manage their resources.

For his part, Member of Parliament Roberto Sánchez (Democratic Transition) highlighted that these resources belong to the workers and that they must have the power to dispose of them.

Assembly member Kelly Portalatino (Perú Libre) noted that the issue is expected to be discussed before the plenary session. After Performance Week in May. This, in his words, would allow the discussion to be prioritized and provide relief to the affected workers.

This ruling, which includes Legislative Initiatives 7130, 7152, 7228, 7358, 7400 and others, has its origins in the economic recession the country is facing where household income is insufficient to cover basic products.

It is to be noted that the authorization for exceptional withdrawal of CTS is valid till 31st December, 2024.

How to Calculate CTS 2024 Fee?

According to Mauricio Matos, associate partner of EY Peru's labor sector for the Andina agency, he explained how to calculate the CTS:

• For an employee receiving an imprecise or variable prime salary, the CTS results from the average salary earned by the employee over the six months covering each period. Hence, the salary is averaged from November to April (May CTS) or May to October (November CTS).
• If an employee who receives a fixed salary but receives an irregular or variable supplementary salary, i.e., because of overtime, received 3 or more times in November of the previous year, these amounts are included in the calculation in the period up to April (May CTS) or in the period from May to October (Nov. CTS). In this way, the concepts are added and divided by 6.

To calculate the amount, you need to take into account the monthly salary received by the worker, and then add 1/6 to the bonus (divide the bonus by six). The total is divided by 360 and then multiplied by the number of days worked (for the entire semester, it would be 180 days).

Who gets CTS in Peru?

• All employees of the private sector who work for at least four hours every day.
• Employees of small businesses who receive 15 per diems for a full year of service. Maximum daily wage is 90.
• In case of agricultural workers, CTS is included in daily wages at the rate of 9.72% of basic pay. However, as in the general labor regime, the employee can claim payment on a differentiated and semi-annual basis.
• Recently domestic workers have also been added. They should be paid CTS wages under the same conditions as the general labor regime.

What happens if the company does not pay CTS?

National Supervision of Labor Supervision (Sunafil) If workers do not deposit CTS by the date of establishment, it is considered a serious offense for which they can get sanction as follows:

• Small Company: Fines range from 0.45 to 4.50 tax units (UIT), between S/2,070 and S/20,700.
• Non-MIB Institutions: Monetary penalties range from 1.57 to 26.12 UIT, which equates to amounts between S/7,222 and S/120,152.